Definition of "Agequake"
Agequake is not the era of earthquakes!
It’s a term that was coined by author Paul Wallace in his 1999 book “Agequake: Ridding the demographic rollercoaster shaking business, finance and our world” and describes a shift in the population pyramid. However statistically backed by Wallace, we could say that this was nothing but an educated guess, however, here we are, almost 20 years later, and guess what? His predictions were pretty much accurate and we are already feeling the effects of the demographic pyramid turned upside-down.
See, the Agequake is basically the continued reign of the Baby Boomer generation. Up until then, each new generation had a certain life expectancy and each new generation had the expectancy to financially live a better life than the generation before. But that stopped with the Millennials. Why? Because, through the advance of medicine and better habits, the Baby Boomers are living (with quality) longer than ever. Which makes them stay longer in the workforce, putting a burden on social security and making everything harder for the Millennial generation, that now has to deal with a supersaturated job market with a much steeper corporate ladder to climb and no safety net (social security) to fall back.
The practical effect of Agequake is the economical focus on a demographic that used to be slim, but now is huge (and has more money than any other demographic): people from 55 and up. That’s why you see a lot of “old” shows and entertainment franchises being brought back to life – rather than having “remakes” - nowadays.
In real estate, Agequake is starting to manifest itself more by the absence of Millennials buying houses than by a “change” in the target. The thing is that the real estate market as we know it is arguably what it is because of the baby boomers. Before them, it was a mere housing necessity; after them, it became much more than that. It became an industry, a market, an investment venue. So, as the Baby Boomers lingered around, the real estate industry never really had to change its target. However, as time continues to pass and life happens with uncontrollable events like accidents and an increasing cost of health insurance, chances are the Boomers are the ones who’ll have to adapt their real estate expectations.
Real Estate tip:
Want to read a more in-depth article about the subject? Read our Agequake: can the population pyramid affect the real estate market? on Realty Times.
And now that you know what’s Agequake, learn what a good trustworthy real estate agent is like by visiting their profiles at The OFFICIAL Real Estate Directory®!
Popular Real Estate Terms
Capitalization rate used to convert the expected income derived from a property into its estimated asset value. The estimated asset value may be computed by dividing the annual income ...
One-time charge assessed by a bank or other financial institution at the closing of buying real property. The fee increases the effective cost to the borrower. One discount point translates ...
Marketable title that is free of encumbrances and disputed interests. Clear title is essential in order to convey a general warranty deed in a transaction. ...
Projecting what the total cost would be to construct a structure. Costs include material, labor, and lawyers' fees. ...
In real estate, Attractive Nuisance is how insurance companies classify something that is inherently dangerous and particularly enticing to children. A hazard located within a property that ...
A zero lot line is a term in residential real estate that refers to houses that are either very close to or at the edge of the property line. These houses are also called zero lot line ...
A legal procedure to sell a mortgage property to the highest bidder in order to satisfy a mortgage claim from a mortgagee against the value o the property. A foreclosure sale can occur from ...
Storage of inactive items, including automobiles, for a certain period. Normally, a storage facility, charging a fee, provides dead storage of items. To prevent deterioration, dead ...
Special tax incentive for the continued use and rehabilitation of historical buildings and old structures in an effort to arrest urban decay. Developers receive a credit based on a ...
Have a question or comment?
We're here to help.